Slide 1: Earnings Presentation First Half 2022
Earnings Presentation First Half 2022 September 30, 2022 1
Slide 2: Business & Strategy update
Business & Strategy update Abdeslam Alaoui, CEO 2
Slide 3: Industry trends
Industry trends Acceleration of non-cash payments (in Billion USD) Source: Capgemini World Payment Reports 2021 3
Slide 4: Industry trends
Industry trends How banks plan to boost payments profitability Source: Capgemini World Payment Reports 2021 4
Slide 5: Industry trends
Industry trends How banks plan to boost payments profitability Source: Capgemini World Payment Reports 2021 5
Slide 6: Sustainable growth strategy
Sustainable growth strategy CORE BUSINESS DIVERSIFICATION OPERATIONAL EFFICIENCY REGIONAL BUSINESS MODEL SEGMENTS 1 Software provider in 5 SaaS provider in Africa 10 PowerCARD for 13 Switching in Morocco 17 Versions Consolidation Europe FinTech players ++ 6 SaaS provider in Middle 18 Data centre Con
Slide 7: Operating & Financial performance
Operating & Financial performance Brahim Berrada, MD Corporate7
Slide 8: Sustainable financial performance
Sustainable financial performance REVENUE EBITDA / MARGIN EPS 481 MMAD 116 MMAD 24.1% 96.2 MAD +22.6% Growth +40.5% Growth +83.8% Growth +18.3% Proforma SEGMENT PERFOMANCE PAYMENT ACTIVITY SWITCHING ACTIVITY TESTING ACTIVITY 83% 7% 10% 388 MMAD 35 MMAD 45 MMAD +35.7% Growth +9.3% Growth -6.2% Growth
Slide 9: Sustainable Business Model
Sustainable Business Model NON RECURRING 24% 47% RECURRING • License model -1.2% Growth Growth drivers - License fee - PS fee • New License deals • Maintenance +14.7% Growth • New Testing • Testing -6.2% Growth contracts 7.4% 9.7% • Processing fees +66.6% Growth 18.6% 15.0% • Click fees +9.9% Growth
Slide 10: Payment activity: License Model
Payment activity License Model Share in Consolidated Revenues ⏵ Continued Rollout of PowerCARD to ⏵ Successful Go-live for Credit cards one of the largest banks worldwide for module for Capitec in South Africa the Debit Card module: UK, Hong Kong and Mexico ⏵ Continued migration of existing 388.1 MM
Slide 11: Payment activity: SaaS Model
Payment activity SaaS Model Share in Consolidated Revenues ⏵ Continued Rollout of PowerCARD on the ⏵ Internal project launched to consolidate Amazon Cloud for Uno Bank in platforms and PowerCARD versions Philippines used on SaaS model 388.1 MMAD 83% ⏵ Signature of our 1st contract in SaaS in ⏵ New m
Slide 12: Switching activity: Cards and Mobile
Switching activity Cards Switching Share in Consolidated Revenues ⏵ Full business recovery after the Covid ⏵ Strong acceleration of cards payments period. Return in 2022 to a normalized and e-commerce transactions after the situation Covid 34.8 MMAD 7% ⏵ Internal project launched to build an ⏵ PCI-D
Slide 13: Switching activity
Switching activity Total Cards Outstanding Transactions ATM Network 18.6 million cards 245.5 million transactions 8,017 units (March 2022) +0.7 million vs. 2021 +16.0% vs. H1 2021 +77 installations vs. 2021 Withdrawal Payment E-Commerce Number of transactions in Millions Number of transactions in Mi
Slide 14: Adjusted Revenue growth
Adjusted Revenue growth Amounts in MMAD +29.0 481 +19.0 452 +54 +3 -3 +2 392 -14 378 +14.8% Adjusted growth at constant scope +19.9% Adjusted growth H1 - 2021 Write-off H1 - 2021 Payment Switching Testing Others ICPS H1 - 2022 USD H1 - 2022 reported adjusted activity activity activity Integration ad
Slide 15: Operating costs
Operating costs Amounts in MMAD ⏵ HR Costs : 209.4 MMAD vs. 171.6 M MAD +7 -14 Growth linked to the increase in +19 -3 396 headcount, change in scope and +31 +8 global increase to face inflation +14 348 ⏵ Subcontracting: 64.9 MMAD 334 Growth linked to the R&D investment for the development of PowerC
Slide 16: Adjusted EBITDA growth
Adjusted EBITDA growth Amounts in MMAD +74 -57 21.1% 22.1% -5 24.1% +29 116 100 83 H1 - 2021 Revenue growth Cost growth H1 - 2022 USD USD H1 - 2022 reported normalized normalized adjusted Revenue impact Cost impact reported 16
Slide 17: R&D activity
R&D activity Share in Consolidated Revenues On-Premise and Cloud- Micro-services & enabled: Hybrid Cloud Composable Technology 66.9 MMAD 13.9% Limitless scalability Works on all database +17.0% growth systems Version 4 progress R&D in MMAD - CAGR 21.6% ⏵ PowerCARD-Switch, PowerCARD-xPOS, ⏵ New featu
Slide 18: Backlog
Backlog NON RECURRING 28.5% Compared to annual Revenues Switch 779 MMAD 93.5% 8.5% +6.3% growth Projects 28.5% Processing 22.5% Upselling Backlog in MMAD - CAGR 9.4% 9.5% Maintenance 29.0% 779 733 546 573 516 RECURRING REGULAR 62% 9.5% Outlook ⏵ Several LOI received, representing more than 200 MMAD
Slide 19: Net cash
Net cash Amounts in MMAD LT Debt compared to equity 305 -1.7 -7.3 168.7 MMAD -18.0 +2.5 280 -6.3% growth 28.4% Net cash in MMAD - CAGR 39.8% 125 112 112 Cash position Operational Investment Financial Currency Cash position end 2021 cash flow cash flow cash flow exchange H1 2022 51 21 22 Outlook ⏵ Ro
Slide 20: Key takeaways
Key takeaways Growth trends will be Profitability trends maintained for 2022 maintained for H2-2022 and objective of an EBITDA comprised between 25% and 30% by 2025 Backlog will be reinforced giving strong Continuation of our M&A strategy visibility for 2023 and beyond to support our sustainable gro
Slide 21: Q&A session
Q&A session HPS,
Slide 22: Annexes - Financial statements
Annexes - Financial statements 23
Slide 23: Balance Sheet - Assets
Balance Sheet - Assets 30/06/22 31/12/21 Fixed Assets 292 634 503 293 636 527 Goodwill 97 955 512 103 589 946 Intagible assets 89 213 100 89 980 610 Property, plant and equipment 40 178 539 38 175 789 Financial assets 5 055 239 3 863 551 Investments in equity affiliates 60 232 114 58 026 630 Current
Slide 24: Balance Sheet - Liabilities
Balance Sheet - Liabilities 30/06/22 31/12/21 Shareholders’ Equity 594 043 434 556 582 145 - Capital 70 359 900 70 359 900 - Share premium 31 623 410 31 623 410 - Consolidated reserves 424 342 345 355 745 559 - Consolidated results 67 717 779 98 853 277 Shareholders’ Equity, Group Share 594 043 434
Slide 25: P&L statements
P&L statements 30/06/22 30/06/21 30/06/2021 proforma Turnover 467 774 909 366 729 188 382 576 293 Change in product inventories 1 364 567 - 453 281 - 2 408 117 Production immobilisée - - - Other operating income 11 823 271 26 137 321 26 270 256 Operating Expenses 480 962 747 392 413 228 406 438 432
Slide 26: Cash flow statements
Cash flow statements 31/12/2021 Net Income 67 717 779 Elimination of net non-cash income and expenses - Depreciation and amortization 17 353 450 - Change in deferred taxes 269 129 - Capital gain or loss on disposal - - Other non-cash income (expense), net 204 626 - Share in the result of companies a
Slide 27: invest@hps-worldwide.com
invest@hps-worldwide.com 28